Do I sell before I buy or buy before I sell? This is such a chicken and egg question, I hear very often "I want to move to another home, another area or even out of state but I have to sell my house first." There is always a fear of being without a place to live it sells too quickly which is touted in the media as quite of phenomenon of homes flying off the shelves. It can be a scary proposition not to mention the idea of moving twice.
Let me first say trying to sell your home and buy at the same time is now extremely difficult, the market is so competitive, the buyers you will be competing against will mostly likely not have a home to sell and that is your first strike. Your second strike maybe your funds are tied up in your home and you cannot make the 3% earnest money deposit demanded on most if not all contracts. AND it is customary now that this be submitted ONE DAY after acceptance.
There are a few ways to get around this one is to request a rent back or to be proper it is called a seller in possession. This is where you request some time after you sell to move, you maybe able to secure another home in this time. The timelines I have seen are between 2 weeks all the way up to 60 days. Often the buyers give you that time without charge, because inventory is tight and they have finally secured a home. I would recommend this request regardless of the situation having time after close to move takes away a lot of stress.
You can also list your home contingent on finding a replacement property, which is still complicated. As you may have secured a committed buyer a seller of a home you are interested in may not still want your offer based on the fact your home has not sold yet. The deal ain't done til it's done. And as tight as the market is not a lot of buyers are interested in this scenario.
I strongly advocate selling your home first in the high season and taking advantage of the high prices and then buying when the market cools off in our area that is late summer, to mid fall, then the inventory drops off. Get a storage pod or rent a unit and store everything you do not need this is good no matter which direction you are going. Then look at short term rentals, network with family and friends insist on paying for where ever you stay and foster good will.
It is not easy but you can do it and with proper counsel it won't seem to bad!
Link to video:
Video-Where to live between buying and selling
Posted by Michele Replogle on